Novia gives wealth firm £750k loan in strategic alliance

Novia and Cocoon Investment Holdings (a substantial investors in Novia) bought a significant chunk of the placing, equating to a 2.5% stake.

The pair have also agreed to provide Tavistock with a £750,000 loan facility for 'business development and working capital purposes'. This loan will be converted to a further 7.5% stake if the company does not spend the money over three years.

Tavistock's discretionary subsidiary, Tavistock Wealth, has created a low cost centralised investment proposition (CIP) for its clients and is now seeking to distribute the service to wider audience.

Novia becomes its preferred partner and the wrap platform provider will introduce advisers to Tavistock on a selective basis.

Tavistock Wealth will grant Novia supporting IFAs access to its CIP, otherwise only available to advisers that have joined the Tavistock Partnership.

Additionally, Tavistock Partners has agreed to make its 'retirement guarantee' available to any such firm at a time of their choosing.

Commenting on the deal Novia chief executive Bill Vasilieff (pictured) told the stock market: 'The trend for the consolidation of IFA firms has accelerated post RDR. We like the Tavistock proposition for advisers and anticipate making an excellent return from our stake in the business.

'The deal adds real value to Novia supporting advisers by obtaining a very attractive retirement option for them, one with preferential terms to those otherwise available. However, the end client will be the real beneficiary, protected from a potential advice gap, by assured continuity of advice in the event that their adviser retires from the market.'

Tavistock chief executive Brian Raven added: 'Novia is one of our platforms of choice because it offers market leading functionality that fits well with our processes.

'Novia has also demonstrated a willingness to work with us for the benefit of our retail clients. We anticipate introducing substantial assets onto the Novia platform as our business expands.'

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